The USD/JPY broke below the support trend lines (dotted green) and is now retracing back to the bottom of the uptrend channel (blue).
Price has either completed a wave Y (pink) or even the entire wave D (light purple), although it is likely that price will probably build a larger WXY within wave D. The bearish momentum is now approaching a key support trend line and 110 round level of the larger uptrend channel, which is a critical bounce or break spot.
The USD/JPY broke below yesterday’s Fibonacci levels of wave 4 (green) which invalidated that wave pattern. It is now more likely that price is building a bearish correction via an ABC or a larger bearish reversal via a 123 wave pattern. A third wave should eventually break below the support trend line (green).
